Japan's purchasing management index (PMI) readings show a rapid development in the activities of the services sector of the country of the rising sun in 8 years.
It indirectly suggests that sentiment among businesses especially tourism is recovering with the advent of coronavirus restrictions around the world.
Revealing the PMI report released by Jibun Bank Japan Service, the reading rose to 54.0 in June from 52.6 in May, marking the fastest growth rate since October 2013.
Usmah Bhatti, an economist at S&P Global Market Intelligence, explained that the Japanese services sector firm saw a strong increase in activity.
This is good news for the Japanese government which is risking domestic demand to ensure that the world's 3rd economy is on a good recovery path as well as overcoming production pressures.
Nevertheless, the firm's average input price has also increased at a high rate since the surge in demand for services as well as the increase in fuel and raw material prices.
This refers to Bhatti will push firms to raise prices on service goods at the fastest rate since October 2019.
Moreover, it can also be concluded that there is the 5th consecutive month of employment growth in the services sector even though the job creation rate is lower than in May.
On the other hand, the composite PMI estimated based on manufacturing and services activities also increased to 53.0 from 52.3 the previous month and grew at the fastest pace in 7 months.
